Indian employees in US at risk? Trump administration targets hiring foreigners via H-1B visa, warns businesses of bias against Americans

The Trump administration is ramping up efforts to challenge what it calls illegal hiring preferences for foreign workers, arguing that such practices undermine American job opportunities.

At the heart of the issue is the H-1B visa program, which critics claim allows foreign professionals to take positions that could otherwise go to US workers.

US crackdown on 'unlawful bias against American workers'

On February 19, 2025, the Equal Employment Opportunity Commission (EEOC) issued a warning to businesses against prioritizing foreign workers over American candidates. Acting Chair Andrea Lucas emphasised that national origin discrimination in hiring is a widespread issue across multiple industries. “Unlawful bias against American workers, in violation of Title VII, is a large-scale problem in multiple industries nationwide,” Lucas said.

“Many employers have policies and practices preferring illegal aliens, migrant workers, and visa holders or other legal immigrants over American workers—in direct violation of federal employment law. Cracking down on this type of unlawful discrimination will shift employer incentives, decreasing demand for illegal alien workers and decreasing abuse of the United States’ legal immigration system.”

Lucas warned that the EEOC will step up enforcement against companies found in violation.

Why companies favour foreign workers

The EEOC outlined several reasons why businesses may prefer hiring foreign workers, including:

• Lower labour costs, sometimes through wage loopholes or illegal payments

• A belief that foreign workers are easier to exploit due to limited knowledge of labour rights

• Customer or client preferences

• Perceptions that foreign workers have a stronger work ethic

Despite these concerns, the American Immigration Council disputes claims that the H-1B program negatively impacts American workers. Their research shows that H-1B workers earn significantly higher wages than the national average. In 2021, the median salary for an H-1B worker was $108,000, compared to $45,760 for all US workers.

Legal scrutiny and industry impact

A lawsuit against Meta Platforms has further fueled the debate, with allegations that the company systematically preferred visa holders over American candidates to reduce costs. A federal judge recently ruled that the case can proceed, intensifying scrutiny on the tech sector's reliance on foreign workers.

Both the Trump and Biden administrations have previously introduced measures to tighten H-1B regulations, including increasing employer scrutiny and adjusting wage requirements. However, demand for H-1B visas remains high, with annual quotas filling up rapidly.

Impact on Indian workers

Indian professionals are the largest beneficiaries of the H-1B program, receiving 72.3% of all visas issued between October 2022 and September 2023, according to U.S. Citizenship and Immigration Services (USCIS). Any policy shifts could significantly affect their opportunities in the US.